$DOG surges 400%, cryptocurrency may be redefining and measuring "value"

In the past 15 days, Meme currency DOG•GO•TO•THE•MOON ($DOG) has continuously risen by more than 230%, breaking through the previous high, reaching a maximum of $0.0062. During the same period, many mainstream L2 protocol tokens in the Bitcoin ecosystem fell by more than 50%. These are what we call “value coins”.

Although the temporary rise and fall cannot explain anything, judging from the past bull market, the leading MemeCoin has performed exceptionally. The price of $DOGE increased more than 150 times in the last bull market, with a market value of nearly $90 billion; other MemeCoins such as $Shib, $People, $ELON, $AKITA, etc. also performed well.

MemeCoin (meme coin) originally originated from two software engineers Billy Markus and Jackson Palmer’s spoof of cryptocurrency in 2013, and thus the dog was born Coin ($DOGE). However, with the development of cryptocurrency, meme coins have become an indispensable and important narrative in every cycle, and are increasingly sought after by the crypto community. Currently, there is even a trend of "rejecting VC coins and only loving MemeCoin".

On the one hand, from the perspective of VC coins, many so-called value coins often have high market capitalization, and they directly stand guard after receiving orders, fearing that the leek will be cut; but on the other hand, it also makes it necessary for us to Thinking about it, does MemeCoin really contain some important "special value"? This special value may be an explicit value or an invisible value for different groups depending on whether their cognition is in place. It has been accepted consciously or unconsciously by the vast crypto community and has developed into a universal value. consensus.

Such changes are enough to arouse people's attention and re-examination. The concept of "value currency" that we are accustomed to is changing in its connotation. How should it be redefined?

Let’s first talk about the so-called value coins. In the original cognitive structure, value coins are supported by value. These value supports basically include:

lTechnological innovation: such as block expansion, smart contracts, AMM, oracles, multi-signature, various A kind of privacy/encryption technology, etc.

l Application innovation: such as DEX, mortgage, lending, derivatives, stable currency, liquidity pool, interest rate swap, aggregate income, etc.

l Value capture: such as $BTC is digital gold, $ETH is the platform token of smart contracts and DApps, $UNI is DEX and has become the infrastructure of various DeFi protocols, etc.

l Economic model: A good value currency often has strict (At least a serious) token economic model can reflect the careful design of protocol tokens in various aspects such as mathematical models, resource integration, token distribution, value capture, and value flywheels

lEcological development: around The encryption protocol forms an upstream, midstream, and downstream ecosystem. The development of the ecosystem can expand and capture the value of the protocol tokens, allowing it to grow and develop sustainably. For example, the prosperous Etherum and Solana ecosystem

lMainstream recognition: For a long time, an encryption protocol has been recognized and invested by VCs to demonstrate its value, and its protocol tokens have become the object of everyone's pursuit.

l……

It can be seen that value currency obviously does not exist in the form of a single currency. It is a comprehensive presentation of encryption technology, encryption protocols, product applications, ecological development, etc. But meme coins seem to be doing the opposite. In the serious atmosphere of the crypto world, they even look like a joke. What are its characteristics?

From the perspective of the currency itself:

lLow unit price

lHuge supply

lNo practical use

lPrice Large fluctuations

lNo serious economic model

lDoes not emphasize technology, fundamentals and ecology

lIt is more like a single currency

lMost of them have short life cycles

l...

But from the perspective of participants, MemeCoin often has the following characteristics:

lInteresting: not serious, fun and interesting, such as $Lowb, although unsuccessful, I find it interesting

lEasy to empathize: Symbolized by some common knowledge, able to empathize to the greatest extent, such as Dogecoin, $PEPE

l Community-driven: It is not driven by the project party and VC from the top down, but the community gathers consensus and participates spontaneously, and participants pay for their own recognition

lEmotion-driven: The community holds together, and with the help of celebrities or the community, often It will produce strong FOMO emotions, FOMO gets on the bus, FOMO gets off the bus

l Cultural attributes: A good Memecoin will gradually precipitate some cultural attributes, which in a certain sense can reflect or highlight different The certain inner heritage and demands of social groups also make the MemeCoin show more lasting vitality

l……

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